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TMI Blog2017 (7) TMI 369X X X X Extracts X X X X X X X X Extracts X X X X ..... handicapped children, providing basic amenities like water etc to the poor and other CSR related activities. It was sought to be explained by the Assessee that being a public sector undertaking its objective was not only earning profit but also serving the society. One of the essential components to justify the invocation of Section 263 of the Act is that the order of the AO must be erroneous. In this case the said requirement cannot be said to be fulfilled. - Decided in favour of assessee. - ITA 362/2017 - - - Dated:- 3-7-2017 - S. MURALIDHAR PRATHIBA M. SINGH JJ. Appellant Through: Mr. Rahul Chaudhary, Sr. Standing Counsel. Respondent Through: Mr. Udit Naresh and Ms. Kavita Jha, Advs O R D E R CM No. 17092/2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... etion of the additions under (i) and (ii) above. 7. As far as the issue at (i) above is concerned, expenditure on advertisement and publicity is essentially for business purposes. It is not of an enduring nature and cannot possibly be characterised as capital expenditure. The finding of the ITAT as regards (i) above does not give rise to any substantial question of law. 8. As regards the expenditure on CSR, the ITAT in the impugned order has noticed that a questionnaire was issued by the AO to the Assessee during the assessment proceedings. The Assessee's reply on this aspect in its reply dated 10th November, 2009 mentioned that the CSR expenses were to the tune of ₹ 8.53 crores. The ITAT accepted the contention of the Asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... places the initial onus on the Assessee to show that the CSR expenses were for business purposes. 12. As far as the present case is concerned, when a questionnaire was issued by the AO raising a specific query as regards the CSR expenses that was answered by the Assessee. The AO could have made further enquiries on this explanation but chose not to do so. That by itself does not make the AO's order erroneous. 13. In fact in the order of the CIT itself in para 6 the explanation offered by the Assessee is noted. According to the Assessee the expenses on account of CSR comprised of expenses on helping the poor children in their study, providing medical care to the poor and downtrodden section of society, rehabilitation of mentally ..... X X X X Extracts X X X X X X X X Extracts X X X X
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